Learn how these plans work, the requirements, how much it will cost, the best companies for seniors, and how to avoid a two-year waiting period.
How Does Burial Insurance For Seniors Work?
Burial insurance for seniors, which is also known as funeral insurance or final expense insurance, is a type of no medical exam whole life insurance policy meant to pay for your burial and other final expenses.
The cash payout from the policy will give your family the money necessary to pay for cremation costs, burial costs, funeral service, outstanding debts, medical bills, credit card debts, or anything else required after death. If all the money is not spent on the funeral, your beneficiaries can use the remaining funds any way they want.
Because a burial policy is a type of whole life insurance, the premiums will never increase, the death benefit won’t decrease, and it lasts forever and builds cash value. The coverage amounts are generally smaller- usually $50,000 or less.
One of the most unique elements of a burial insurance policy is the lenient underwriting. Despite severe health issues, seniors can still qualify for a new policy, which is not true for traditional life insurance policies.
There are two types of burial insurance plans for seniors.
- Simplified issue: These plans are the least expensive and can offer immediate peace of mind because the full death benefit pays out starting on day one (no waiting period). You don’t have to take a medical exam to qualify, but you must answer health questions. These plans are often called “no exam funeral insurance.”
- Guaranteed issue: Commonly referred to as “guaranteed acceptance,” these plans have no health questions because your approval is guaranteed. They have higher premiums than simplified issue policies, and there’s always a two-year waiting period. If you die during the waiting period, the insurance company will only refund your premiums plus a tiny amount of interest. The waiting period does not apply to accidental death.
Which Companies Have The Best Burial Insurance For Seniors?
There are dozens of final expense life insurance companies for seniors. And while there is no way to select just one for each person, we narrowed it down to the top five.
If you’re a senior and need burial insurance coverage, check out these five companies because your best burial insurance policy is probably with one of them.
1) Mutual of Omaha
Choice Mutual’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.
Living Promise whole life insurance from Mutual of Omaha is one of the least expensive burial insurance policies for seniors.
Their level benefit plan has no waiting period if you’re approved.
You will probably qualify for a Mutual of Omaha burial insurance policy unless you’ve had a recent heart attack, stroke, cancer, or significant chronic illnesses.
On a side note, they also offer inexpensive life insurance coverage for babies if that interests you.
Product Details | Policy Type: Whole Life Insurance |
New Applicant Age Range: 45-85 | |
2-Year Waiting Period: No (subject to underwriting approval) | |
Coverage Amount Range: $2,000-$50,000 | |
States Available: All States (except New York) | |
Product Benefits | Premiums Stay the Same Forever: Yes |
Builds Cash Value: Yes | |
Policy Duration: Lifetime | |
Optional Riders: Accidental Death (2X the payout for accidental death) | |
Application Details | Where to Apply: Agencies licensed to sell Mutual of Omaha products (you can't buy this plan directly from them) |
Phone Number to Apply: 1-800-644-2926 | |
Medical Exam Required: No | |
Guaranteed Acceptance: No | |
Application Approval Time: 10 Minutes to 2 Business Days | |
Common health conditions still eligible for no waiting period coverage: Aneurysm Arthritis Asthma Blindness Blood clots > 2 years ago Blood thinners Cancer > 4 years ago Circulatory surgery > 2 years ago Crohn’s disease Depression Diabetes (type 2) Diverticulitis Epilepsy Fibromyalgia Grave’s disease Heart attack > 2 years ago Heart surgery > 2 years ago Hepatitis A or B High blood pressure High cholesterol Scleroderma Seizures Sleep apnea Squamous/basal cell skin cancer Stroke/TIA > 2 years ago Tumors (non-cancerous) |
2) Aetna
Choice Mutual’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.
Aetna Life Insurance is probably your company if you need life insurance for a senior over the age of 80. Shockingly, they will accept new applicants as old as 89.
They offer immediate no-exam life insurance options to seniors with serious health conditions such as COPD, diabetes, Parkinson’s, multiple sclerosis, and atrial fibrillation, to name a few.
Another positive feature of Aetna is its very lax rules regarding beneficiaries. For example, they will allow you to name a friend or funeral home as the beneficiary. Not all final expense carriers will allow that.
Product Details | Policy Type: Whole Life Insurance |
New Applicant Age Range: 40-89 | |
2-Year Waiting Period: No (subject to underwriting approval) | |
Coverage Amount Range: $2,000-$50,000 (varies by age) |
|
States Available: All States (except New York) | |
Product Benefits | Premiums Stay the Same Forever: Yes |
Builds Cash Value: Yes | |
Policy Duration: Lifetime | |
Optional Riders: Accidental Death (2X the payout for accidental death) |
|
Application Details | Where to Apply: Agencies licensed to sell Aetna products (you can't buy this plan directly from them) |
Phone Number to Apply: 1-800-644-2926 | |
Medical Exam Required: No | |
Guaranteed Acceptance: No | |
Application Approval Time: 15 Minutes-3 Business Days | |
Common conditions still eligible for no waiting period coverage: Afib Aneurysm (if surgically repaired) Arthritis Asthma Bipolar disorder Blindness Blood clots Blood thinners Cancer > 2 years ago Chronic bronchitis Circulatory surgery > 2 years ago COPD Crohn’s disease Depression Diabetes (type 1 or 2) Diabetic coma > 2 years ago Diverticulitis Epilepsy Fibromyalgia Graves’ disease Heart attack > 1 year ago Heart surgery > 1 year ago Hepatitis > 2 years ago High blood pressure High cholesterol Insulin shock > 2 years ago Lupus Multiple sclerosis Obesity Over 85 life insurance Pacemaker (installed > 1 year ago) Parkinson’s disease Sarcoidosis Schizophrenia Scleroderma Seizures Sleep apnea Squamous/basal cell skin cancer Stroke/TIA > 1 year ago Tumors (noncancerous) |
3) Aflac
Choice Mutual’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.
Aflac final expense insurance is an excellent option whether you’re healthy or have severe conditions like COPD or Parkinson’s. They ranked #3 on our list of best burial insurance companies.
In addition to them accepting many health issues, their prices are in line with most other providers. In particular, they offer some of the cheapest burial insurance for seniors over 70.
Product Details | Policy Type: Whole Life Insurance |
New Applicant Age Range: 45-80 | |
2-Year Waiting Period: No (subject to underwriting approval) | |
Coverage Amount Range: $2,000-$50,000 (varies by age) |
|
States Available: All States (except New York) | |
Product Benefits | Premiums Stay the Same Forever: Yes |
Builds Cash Value: Yes | |
Policy Duration: Lifetime | |
Optional Riders: Accidental Death (2X the payout for accidental death) |
|
Application Details | Where to Apply: Agencies licensed to sell Aflac products (you can't buy this plan directly from them) |
Phone Number to Apply: 1-800-644-2926 | |
Medical Exam Required: No | |
Guaranteed Acceptance: No | |
Application Approval Time: 15 Minutes-3 Business Days | |
Common conditions still eligible for no waiting period coverage: Afib Aneurysm (if surgically repaired) Arthritis Asthma Bipolar disorder Blindness Blood clots Blood thinners Cancer > 2 years ago Chronic bronchitis Circulatory surgery > 2 years ago COPD Crohn’s disease Depression Diabetes (type 1 or 2) Diabetic coma > 2 years ago Diverticulitis Epilepsy Fibromyalgia Graves’ disease Heart attack > 1 year ago Heart surgery > 1 year ago Hepatitis > 2 years ago High blood pressure High cholesterol Insulin shock > 2 years ago Lupus Multiple sclerosis Obesity Over 85 life insurance Pacemaker (installed > 1 year ago) Parkinson’s disease Sarcoidosis Schizophrenia Scleroderma Seizures Sleep apnea Squamous/basal cell skin cancer Stroke/TIA > 1 year ago Tumors (noncancerous) |
4) Royal Neighbors of America
Choice Mutual’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.
Royal Neighbors of America isn’t a name you’ll see on TV, but that doesn’t mean they aren’t trustworthy or financially sound. Just look at how long they’ve been in business and their financial ratings.
Seniors with diabetes, past heart issues, past instances with cancer, and many other high-risk health issues can still qualify for their level benefit senior life insurance.
In addition, their prices are in line with most other final expense companies, so you can trust that you’re paying a fair price with them.
Product Details | Policy Type: Whole Life Insurance |
New Applicant Age Range: 50-80 | |
2-Year Waiting Period: No (subject to underwriting approval) | |
Coverage Amount Range: $7,000-$30,000 | |
States Available: All States (except AK, AL, HI, LA, MA, NH, NY) |
|
Product Benefits | Premiums Stay the Same Forever: Yes |
Builds Cash Value: Yes | |
Policy Duration: Lifetime | |
Optional Riders: None | |
Application Details | Where to Apply: Agencies licensed to sell Royal Neighbors products (you can't buy this plan directly from them) |
Phone Number to Apply: 1-800-644-2926 | |
Medical Exam Required: No | |
Guaranteed Acceptance: No | |
Application Approval Time: 10 Minutes | |
Common conditions still eligible for no waiting period coverage: Afib Aneurysm Arthritis Asthma Bipolar disorder Blindness Blood clots Blood thinners Cancer > 2 years ago Circulatory surgery > 2 years ago Crohn’s disease Depression Diabetes (type 1 or 2) Diabetic neuropathy Diverticulitis Fibromyalgia Grave’s disease Heart attack > 2 years ago Heart surgery > 2 years ago Hepatitis > 2 years ago High blood pressure High cholesterol Home health care Multiple instances of cancer Pacemaker (installed > 2 years ago) Retinopathy Schizophrenia Scleroderma Severely overweight Sleep apnea Tia mini-strokes Tumors |
5) American Amicable
Choice Mutual’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.
There are many cases where American Amicable has the best funeral insurance for seniors.
For example, people with mental health issues such as anxiety, depression, bipolar disorder, or schizophrenia can get rock-bottom rates and no waiting period coverage.
Their smoker rates are among the lowest in the nation. Also, pipe and cigar users can actually get a non-tobacco rating.
That could save you as much as 40% on your insurance premiums.
Product Details | Policy Type: Whole Life Insurance |
New Applicant Age Range: 50-85 | |
2-Year Waiting Period: No (subject to underwriting approval) | |
Coverage Amount Range: $2,500-$50,000 (varies by age) | |
States Available: All States (except CT, ME, MT, NH, NY, VT) | |
Product Benefits | Premiums Stay the Same Forever: Yes |
Builds Cash Value: Yes | |
Policy Duration: Lifetime | |
Optional Riders: None | |
Application Details | Where to Apply: Agencies licensed to sell American Amicable products (you can't buy this plan directly from them) |
Phone Number to Apply: 1-800-644-2926 | |
Medical Exam Required: No | |
Guaranteed Acceptance: No | |
Application Approval Time: < 10 minutes | |
Common conditions still eligible for no waiting period coverage: Afib Aneurysm > 3 years ago Arthritis Asthma Bipolar disorder Blindness Blood clots Blood thinners Cancer > 3 years ago Circulatory surgery > 3 years ago Crohn’s disease Depression Diabetes (type 2) Diverticulitis Fibromyalgia Grave’s disease Heart attack > 3 years ago Heart surgery > 3 years ago Hepatitis > 3 years ago High blood pressure High cholesterol Pacemaker (installed > 3 years ago) Schizophrenia Scleroderma Sickle cell anemia Sleep apnea Squamous/basal cell skin cancer Stroke/TIA > 3 years ago Tumors (non-cancerous) |
How Much Does Senior Final Expense Insurance Cost?
The average cost of funeral insurance for seniors is about $50-$150 per month for a policy in the $10,000-$15,000 range.
All life insurance rates vary based on your health, age, gender, state of residence, and the amount of coverage you buy.
Age | Female $10,000 Simplified Issue (Monthly Rates) | Female $10,000 Guaranteed Acceptance (Monthly Rates) | Male $10,000 Simplified Issue (Monthly Rates) | Male $10,000 Guaranteed Acceptance (Monthly Rates) |
---|---|---|---|---|
45 | $22 | $28 | $27 | $33 |
50 | $24 | $30 | $30 | $36 |
55 | $27 | $38 | $35 | $45 |
60 | $32 | $42 | $43 | $55 |
65 | $41 | $51 | $54 | $66 |
70 | $51 | $69 | $70 | $89 |
75 | $71 | $98 | $99 | $121 |
80 | $98 | $140 | $139 | $166 |
85 | $135 | $170 | $192 | $230 |
How To Get Funeral Insurance For Seniors With No Waiting Period
You have to answer health questions to get a policy with no waiting period. You don’t have to take a medical exam but must complete a health questionnaire.
Remember that most people, despite past health ailments, can qualify for immediate coverage. You don’t have to be in good health.
Don’t mistakenly assume you will have a waiting period due to your past ailments.
That is not true for most applicants. Unless you have a terminal illness, heart failure, or dementia, you can probably qualify for an immediate coverage policy.
If you want a plan that immediately covers you, call us at 1-800-644-2926. We have over 15 different insurance companies that we partner with.
If immediate coverage is possible for you, we’ll find it.
How To Find The Best Burial Insurance For Elderly People
No matter what product you’re buying, it’s no secret that you should compare offers from multiple companies before you commit to one.
The same is true when looking for an affordable final expense policy for seniors.
Browse websites like Choice Mutual that allow you to compare free quotes from multiple insurance providers. That will give you a good sense of what coverage will likely cost you.
In the end, if you want a life insurance policy with no waiting period at the lowest price possible, you will need to speak with an agent.
It’s helpful to remember that most burial insurance companies that sell coverage directly to the consumer (no agent involvement) usually impose a two-year waiting period before you’re insured because they are selling you guaranteed issue life insurance (which always has a waiting period).
Generally speaking, only licensed agents can offer the best rates and plans that pay out the full death benefit immediately.
But don’t speak with just any agent. Here are the criteria you should look for when selecting an agency to work with:
- Independence: Be sure to work with an independent agency with access to at least ten insurance companies. They will compare offers from multiple providers to match you with the best one. It’s highly advisable to avoid “captive” insurance companies. Those are companies that have only one insurance company they can offer you. Funeral Advantage is an example of a company that typically prevents its agents from offering anything other than Lincoln Heritage insurance. So be sure to work with a broker who can choose from dozens of insurers to find the best one for you.
- Reputation: Check their online reputation to ensure past customers were satisfied with their service. A bad online reputation usually indicates lousy insurance products and poor customer service.
- Expertise: It’s hard to be a jack of all trades in the insurance business. Be sure to find one that specializes in funeral insurance for seniors. That way, you know you’re dealing with an expert rather than a novice.
Remember, there is no free burial insurance for seniors. Avoid any insurance agent or company that advertises in such a misleading way.
An honest independent agent is your surest path to finding the best life insurance for seniors.
Be Wary Of Term Insurance For Final Expense Coverage
Buying a term life insurance policy to cover end-of-life expenses is risky.
At the latest, a term life plan will generally expire around age 80.
AARP’s final expense insurance is a prominent example of a term life offering for burial coverage. Their primary policy is a term plan that completely expires once you turn 80.
Globe Life Insurance is another option that expires in your 80s.
Both AARP and Globe have the same marketing tactics. They dazzle seniors with their lower-cost term life insurance, hoping they’ll be attracted to the lower prices (which they usually are).
Because term insurance expires, it will always have less expensive premium payments than whole life.
They are counting on policyholders never stopping to consider why the insurance is cheaper.
Sadly, many unsuspecting consumers fall for that trick. Then, on their 80th birthday, they learn the truth because they get a letter telling them they are uninsured.
If you need a life insurance plan to cover the cost of a funeral, you should opt for the peace of mind that permanent life insurance offers.
Term insurance will likely lead to a financial burden for your family members because they will have to pay for your burial costs.
So be very wary of AARP life insurance for seniors for these reasons.
Coverage For Elderly Parents
In short, you can buy funeral expense insurance for your parents or grandparents.
Here’s what you need to know:
- They must agree to the policy being issued. You cannot buy life insurance for a parent without their knowledge and consent. If your parents do not want to participate, just put money into a savings account or buy a pre-paid burial from a funeral home. Even if you have power of attorney, they must still answer the questions and consent. Under no circumstances can you do it for them.
- They’ll need to answer health questions if you want immediate coverage for them. You should gather some details about their past and current health issues before speaking with an agent. With their health information, your agent can determine which company (if any) will approve them for an immediate coverage plan.
Just know that you don’t need your parents on the phone when you initially speak with an agent.
For example, at Choice Mutual, we can give you life insurance quotes, answer your questions, and familiarize you with the application process.
Then, when you’re ready to apply formally, we’ll coordinate a time to connect with both you and your parents.
Frequently Asked Questions
At the very least, everyone who is 45-85 can obtain a guaranteed acceptance policy. However, it’s important to note that all guaranteed issue policies have a two-year waiting period. If you die during the waiting period, the insurer only refunds your premiums plus interest. Seniors should opt to apply for coverage that has a health questionnaire. If approved, the policy will likely be cheaper and not have a waiting period. There are still options for people outside of 45-85, but you’ll have to medically qualify for the coverage.
Final expense life insurance for seniors typically costs $50-$150 monthly for a $10,000-$15,000 death benefit. Rates vary based on gender, health, and how much coverage you select.
When comparing a burial policy vs life insurance, it’s helpful to remember that burial insurance is a type of life insurance. To be more specific, burial insurance is a particular type of whole life policy with small coverage options and a fast claim payout.
All insurance companies have a minimum and maximum age for new applicants. Typically, the minimum age is 45-50. Typically, 85 is the oldest most burial insurance companies will accept a new applicant. However, there are a few options for people over 85, but not many.
There are absolutely no hidden fees when you buy final expense insurance. Also, there are no down payments when you submit your application. Your monthly payment is the only money you’ll ever pay.
Final expense insurance pays a tax-free cash benefit to your beneficiaries. They can use the money as they see fit and keep what’s left over. Your loved ones will never incur a tax burden because of the policy payout.
Cash value in a life insurance policy is like a behind-the-scenes savings account that accumulates value over time. Every time you make a payment, a portion of your payment goes toward the insurance cost. At the same time, a much smaller amount goes into a behind-the-scenes savings account called the cash value. You may elect to borrow from the cash value that has accumulated. Nearly all burial insurance policies have cash value. Both whole life and universal life policies build cash value.
90 is the age limit for life insurance. Even though there are options for ages 86-90, there are only a handful of companies available, and it varies by state. If you’re above 90, you should explore a pre-paid plan directly with a local funeral home.
There is no difference. It’s helpful to remember that “burial insurance” is just a marketing expression. Burial insurance is also commonly referred to as “funeral insurance,” “final expense insurance,” “cremation insurance,” or “end-of-life insurance.” All these labels have the same meaning.